The approval of spot-Bitcoin ETF remains a hot issue of debate among investors, regulators, and financial institutions.
Cathie Wood Shifts Perspective on Bitcoin ETF
Cathie Wood shared her updated perspective on spot Bitcoin ETF approvals during an interview with Bloomberg TV on Monday, where she stated:
“I think the SEC if it’s going to approve a Bitcoin ETF, will approve more than one at once.”
This shift in perception indicates a reversal in the crypto community, as her firm had previously claimed to be at the forefront of the approval process due to its early application submission with the SEC.
In June, ARK Invest made waves when it filed for a spot-Bitcoin ETF. The firm’s enthusiasm was boosted by its timely filing with the SEC. However, the environment has changed, with Wood speculating that the regulatory body may choose to approve many applications at the same time.
James Seyffart, an ETF analyst at Bloomberg Intelligence, has weighed in on Wood’s recent remarks about the potential approval of multiple spot-Bitcoin ETFs by the SEC. Seyffart believes that Wood’s observations align with the sentiments shared by many in the industry, including analysts like himself.
He points out that the SEC may find it easier to approve several spot Bitcoin funds simultaneously, given the current circumstances surrounding the Grayscale Investments LLC lawsuit against the regulator.
Grayscale, a major player in the crypto asset management space, is currently embroiled in a legal battle with the SEC. The company took the SEC to court after the regulator rejected its plan to convert the Grayscale Bitcoin Trust (GBTC), which holds around $18 billion worth of Bitcoin, into an ETF.
Should the court rule in favor of Grayscale, it might signal to the SEC that there is a viable path for converting existing Bitcoin investment products into ETFs. As a result, the “path of least resistance” for the SEC, according to Seyffart, would be to approve multiple spot-Bitcoin funds concurrently, potentially following a successful resolution of Grayscale’s lawsuit.
Spot Bitcoin ETFs: Intense Competition Ahead of Regulatory Approval
The approval of spot-Bitcoin ETF remains a hot issue of debate among investors, regulators, and financial institutions. While the desire for a regulated Bitcoin ETF has progressively increased, the road to approval has been difficult.
The SEC has been hesitant to grant its blessing for such a product, citing concerns over market manipulation, liquidity, and custody. As a result, no spot Bitcoin ETF currently exists in the US.
However, this has not deterred several leading financial firms, including BlackRock Inc (NYSE: BLK), Fidelity Investment, WisdomTree, VanEck, and Invesco, from submitting their applications for approval, each offering products strikingly similar to the proposal put forth by ARK Invest.
Cathie Wood has noted that with multiple firms competing for approval with similar underlying assets, the success of each ETF will hinge on the issuer’s marketing acumen.